Results(1C)

Table of Results for Wealth Management for the last three years from 2016 to 2014.

$ millions, for the year ended October 31

2016

2015(2C)

2014(2C)

Revenue

Retail brokerage

$

1,269

$

1,282

$

1,232

Asset management

746

707

601

Private wealth management

381

379

275

Other

443

100

92

Total revenue

2,839

2,468

2,200

Provision for (reversal of) credit losses

–

(1)

–

Non-interest expenses

1,753

1,784

1,582

Income before income taxes

1,086

685

618

Income taxes

222

167

148

Net income

$

864

$

518

$

470

Net income attributable to:

Non-controlling interests

$

–

$

–

$

2

Equity shareholders (a)

864

518

468

Efficiency ratio

61.7

%

72.3

%

71.9

%

Return on equity(3C)

43.5

%

22.4

%

22.3

%

Charge for economic capital(3C) (b)

$

(193)

$

(276)

$

(256)

Economic profit(3C) (a+b)

$

671

$

242

$

212

Average assets ($ billions)

$

4.5

$

4.8

$

4.4

Average loans ($ billions)

$

2.1

$

2.1

$

1.9

Average deposits ($ billions)

$

9.8

$

9.0

$

8.5

AUA ($ billions)

$

325.5

$

304.8

$

288.6

AUM ($ billions)

$

183.2

$

169.9

$

151.5

Full-time equivalent employees

4,295

4,350

4,169

(1C)

For additional segmented information, see Note 28 to the consolidated financial statements.

(2C)

Certain information has been reclassified to conform to the presentation adopted in the current year. See “External reporting changes” for additional details.

(3C)

For additional information, see the “Non-GAAP measures” section.

Financial overview

Net income was up $346 million or 67% from 2015, mainly due to the gain, net of transaction costs, on the sale of our minority investment in ACI, shown as an item of note.

Revenue

Revenue was up $371 million or 15% from 2015.

Retail brokerage revenue was down $13 million or 1%, primarily due to lower commission revenue as a result of a decline in transaction volume, partially offset by higher investment management and custodial fees, driven by higher average AUM and AUA.

Asset management revenue was up $39 million or 6%, primarily due to higher average AUM, driven by net sales of long-term mutual funds and market appreciation, and mark-to-market gains on seed capital investments in recently launched mutual funds and institutional pools.

Private wealth management revenue was up $2 million or 1%, primarily due to higher average AUM, including the favourable impact of foreign exchange
rates, and volume growth in loans and deposits. This was partially offset by lower annual performance fees earned by Atlantic Trust.

Other revenue was up $343 million due to the gain on sale of ACI noted above, partially offset by lower ACI revenue following the announcement of the
sale.

Non-interest expenses

Non-interest expenses were down $31 million or 2% from 2015, primarily due to lower performance-based compensation.

Income taxes

Income taxes were up $55 million or 33% from 2015, primarily due to the gain on sale of ACI noted above.

Assets under administration

AUA were up $21 billion or 7% from 2015, from market appreciation and strong net flows. AUM amounts are included in the amounts reported under
AUA.